Hard Times for Western Digital

tdp2664
InvestorPlace
Sometimes you can't get no respect. Hard drive manufacturer and marketer Western Digital (NYSE: WDC ) plans to present at a conference next week. So what happens? An option trader took a bearish position on the stock yesterday, with some heavy buying of WDC June 38 Puts for $1.60 and $1.61. A trader bought 2,500 options in a one minute against open interest of just 278 contracts, indicating that the puts were purchased to open a new position. WDC fell 2.28% yesterday to close at $38.56. WDC had been trending higher since the end of February and hit a 52-week high of $41.87 on April 21 after its last earnings report, but shares have been falling ever since. We did not see stock activity that was obviously tied to yesterday’s option trading, but it could have been done as a hedge on an existing long position. The put buying could also be a straight bet that WDC will fall more than 5.5% by expiration in less than three weeks. The company said yesterday that it will present at the Robert W. Baird 2011 Growth Stock Conference on May 10. Its next quarterly results are scheduled for July 20. optionMONSTER ® provides stock market insight, option trade ideas, and options education to meet the needs of do-it-yourself investors.